The majority of people accessing their pensions flexibly by drawing cash while still paying in are unaware of the tax implications and the money purchase annual allowance (MPAA), new research has found.
Of the 37% of people accessing pensions flexibly while still working, more than two-thirds (67%) are unaware of the MPAA, Retirement Advantage claimed. Pensions technical director Andrew Tully (pictured) said he was concerned many people would be losing out following the MPAA rule change. "This is likely to catch many out when the limit drops to £4,000 from 6 April this year," he said. Chancellor Philip Hammond announced in his 2016 Autumn Statement, that he would cut the MPAA by 60% to £4,000 per year in April "to prevent inappropriate double tax relief". The government confirmed the...
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